Indium Services, Inc., is considering replacing a machine. The following data are available:

	Old Machine	Replacement Machine
Original cost	$630,000	$490,000
Useful life in years	10	5
Current age in years	5	0
Book value	$350,000	--
Disposal value now	$112,000	--
Disposal value in 5 years	--	--
Annual cash operating costs	$98,000	$56,000

The difference between keeping the old machine and replacing the old machine is ________.

Group of answer choices

$518,000 in favor of keeping the old machine

$168,000 in favor of keeping the old machine

$518,000 in favor of replacing the old machine

$168,000 in favor of replacing the old machine